I know that \"string\" in C# is a reference type. This is on MSDN. However, this code doesn\'t work as it should then:
class Test
{
public static void
Actually it would have been the same for any object for that matter i.e. being a reference type and passing by reference are 2 different things in c#.
This would work, but that applies regardless of the type:
public static void TestI(ref string test)
Also about string being a reference type, its also a special one. Its designed to be immutable, so all of its methods won't modify the instance (they return a new one). It also has some extra things in it for performance.